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EUR/USD Parity Still In Play

Updated Dec. 7, 2015 4:34 a.m. ET

0848 GMT The “reactionary bounce” higher in the euro after last week’s announcements by the European Central Bank “is likely to fade,” says BMI Research. “The momentum and fundamentals still favor the dollar, and the long-term chart suggests that a test of multi-decade support for the euro at around parity will be tested,” it says. BMI maintains its view that the euro will average lower versus the U.S. dollar in 2016 than it did in 2015, at $1.07/EUR versus $1.10/EUR, respectively. EUR/USD is 0.6% lower at 1.0822.